Clearly the most arduous part of the Wealth Management proces is having to construct a list of household expenditures. But the question remains, why is it so arduous?  In a world of online tools such as Quicken or Mint, why is budgeting so damn aggravating? 

First off, as you can read here, there are some pretty fundamental reasons, three of them actually, the first of which is clear, "it's not fun." We get it, and we can appreciate it. Few things that are necessary in life are fun in the true sense of the word, eating salad isn't fun, exercising everyday isn't fun and surely, picking that salad over your favorite steak or cheeseburger and fries isn't fun either. 

The second falls into that realm of the "doing v. knowing" gap. You already know where your money is going (out of your bank doesn't qualify as an answer).  But truly, you don't know where its going, you just think you do. And, in the world of the "doing v. knowing" gap, thinking you do virtually makes it so.  

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Clearly the most arduous part of the Wealth Management proces is having to construct a list of household expenditures. But the question remains, why is it so arduous?  In a world of online tools such as Quicken or Mint, why is budgeting so damn aggravating? 

First off, as you can read here, there are some pretty fundamental reasons, three of them actually, the first of which is clear, "it's not fun." We get it, and we can appreciate it. Few things that are necessary in life are fun in the true sense of the word, eating salad isn't fun, exercising everyday isn't fun and surely, picking that salad over your favorite steak or cheeseburger and fries isn't fun either. 

The second falls into that realm of the "doing v. knowing" gap. You already know where your money is going (out of your bank doesn't qualify as an answer).  But truly, you don't know where its going, you just think you do. And, in the world of the "doing v. knowing" gap, thinking you do virtually makes it so.  

For all we may want to ignore it; the reality remains that whatever you earn in your lifetime, whatever you save, whatever you invest is largely meant to do one primary thing....pay for what you spend today and what you'll spend over the remainder of your lifetime.  

Meaningful financial plans are built on accurately judging expenses, today and tomorrow. Not perfectly predicting it, but accurately predicting it would be key. If you're building a house, your "budget" is your foundation, everything else gets built on top of that. The more accurate (level) the budget the more reliable everything from there up is going to be.  

And, as the Carl Richards notes in his article, awareness is seldom ever a bad thing to have.